Trade Magnates - Oil prices continued to fall on Wednesday extending Tuesday’s losses amid speculation over the weekly supply data that will be released later today which may show an increase in the US oil inventories.
NYMEX Oil future recovered above $ 55 mark while, however it remains weaker on the back of bearish inventory report released by the API late-Tuesday that US oil inventories rose by 6.5 million barrels last week. Brent crude futures dipped 58 cents to $61.63 per barrel.
The drop-in prices this week dragged down the oil futures by 5% after reaching its highest record in 28 months last week.
The Focus now will be towards the official US government crude oil stockpiles report, which will provide insights on the US supply amid rising US output levels and rig counts, and the Nov. 30th meeting that will be held by OPEC and non OPEC countries to discuss the policy, and it is expected to agree an extension of the inventories cuts.